Trends and challenges in the Entrepreneurial Ecosystem 2025

2025 begins with a focus on technological advancements and the growing application of Artificial Intelligence (AI) in business. In today’s dynamic and fast-paced market, it is essential for entrepreneurs to stay abreast of the trends and challenges that will shape the business landscape in the coming months.

Last year, 2024, saw the consolidation of the startup ecosystem at a national level, with highly skilled teams and mature projects averaging over 3.19 years, according to the 2024 Entrepreneurship Map by South Summit. This report highlights that 2 out of 10 startups have reached the scaleup stage, underlining the scalability of many projects achieving sustainable growth.

A key insight from the 2024 Entrepreneurship Map is that 30% of Spanish startups use AI daily, emphasising this technology’s rising importance in enhancing business competitiveness and efficiency. Projects such as Factorial, which excels in the human resources sector, and Bnext, leveraging AI to personalise customer experiences, showcase how AI is transforming diverse industries.

However, despite these advancements, access to funding remains one of the main obstacles for startups. Although investment in 2024 increased in key sectors like AI and biotechnology, many entrepreneurs still face challenges in securing capital.

The South Summit report also underscores the ongoing struggle to attract and retain talent. The labour market remains competitive, and companies must offer appealing environments that foster innovation and inclusion.

On the other hand, one of the biggest challenges this year is internationalisation. While many entrepreneurs are reaching high levels of maturity with their projects, global expansion remains a work in progress. In this regard, initiatives such as the Desafía Programme are helping emerging businesses take the leap to international markets.

In this post, we will explore key sectors for entrepreneurship in 2025, investment forecasts, megatrends such as AI application in businesses, product and service personalisation, accessibility, the circular economy, and the common challenges entrepreneurs face. Keep reading to anticipate emerging trends, identify growth opportunities, and develop effective strategies for 2025!

High-Traction Sectors in 2025

According to the 2024 Entrepreneurship Map by South Summit, Spain currently hosts 3,640 active startups, generating significant economic impact estimated at €7.7 billion and contributing over 69,000 jobs to the country’s economy. However, the creation of new startups is experiencing a notable slowdown, with just 92 emerging companies in 2024 compared to 927 in 2021. Despite this decline, some sectors continue to show substantial growth potential.

Information Technology. Digitalisation remains on the rise, with technologies like SaaS, Big Data, cloud computing, and cybersecurity offering broad opportunities. Quantum computing, while still emerging, is beginning to play a crucial role in transforming business processes. Notable companies in this area include Qilimanjaro Quantum Tech, developing next-generation analogue quantum processors; Multiverse Computing, specialising in quantum software for sectors like finance, energy, and healthcare; and Devo, a cloud-based data analytics platform that raised €250 million in its latest funding round.

Health and Biotechnology. Startups in these sectors are revolutionising biotechnology, telemedicine, and digital health, significantly improving quality of life with advanced solutions. Companies such as Batea Oncology, developing innovative glioblastoma treatments with their GlioHook device; Monoryx Therapeutics, which raised €51 million to advance treatments for rare diseases; and Ona Therapeutics, focusing on cancer therapies and recently securing €30 million in funding, are leading this innovation.

Circular Economy and Climate. Sustainability is no longer optional. Initiatives based on the circular economy are increasingly relevant, offering opportunities to reduce environmental impact while creating new business models. Examples include ADBioplastics, specialising in compostable bioplastics; Blue Circular, using blockchain to enhance traceability in recycling and circular economy projects; and Cartonlab, an eco-design lab producing 100% recyclable cardboard experiences.

Financial Services. Fintech innovation continues to transform banking services. From blockchain to digital payments, solutions in this area offer vast growth potential. Spanish startups like Coinscrap, providing AI-powered financial planning tools; Flanks, revolutionising wealth management through data automation; and Deale, a digital M&A platform connecting SMEs with investors and advisors, exemplify this transformation.

Investment Forecasts for 2025

As important as identifying the sectors with the greatest potential is understanding how investment in these companies is expected to evolve throughout the year. The ability to attract capital is crucial for the success of a startup, regardless of its sector. Investment in startups is anticipated to continue growing in 2025, albeit with a more selective and strategic approach. Investors are increasingly focusing on companies that not only bring disruptive innovation but also create a positive impact on society and the environment.

In this context, the Recovery, Transformation, and Resilience Plan continues to support the sector with an investment of €140 billion, largely allocated to the digitalization and sustainability of businesses. Additionally, the private sector is expected to increase its participation in innovation and development projects, with forecasts predicting that investment in R&D&I will rise to 2% of GDP by 2025.

To attract investment, startups must demonstrate not only their capacity for innovation but also their scalability, adaptability, and sustainability potential. Transparency, a robust business model, and the ability to scale are key factors in securing the desired capital. Furthermore, maintaining consistent and effective communication with investors, showcasing tangible results, and presenting a clear roadmap for the future are crucial for success.

On another front, large corporations are increasingly adopting the venture capital model as a key strategy to access disruptive technologies, support emerging businesses, and explore new markets. This collaboration between corporations and startups is becoming a strategic necessity rather than a mere trend.

Key Megatrends in the Spanish Entrepreneurial Ecosystem

Among the most influential trends of 2025, four key megatrends stand out: the implementation of Artificial Intelligence (AI), product and service personalization, accessibility, and sustainability. These transformative forces are reshaping the business landscape and offering new opportunities for companies that know how to adapt.

Artificial Intelligence (AI) remains the most prominent trend. Its ability to automate processes, analyze vast amounts of data, and improve decision-making is redefining how businesses operate and compete in the market. From a business perspective, AI enables the delivery of higher-quality products and services more quickly and at lower costs. According to the 2024 South Summit Entrepreneurship Map, 30% of startups report using this tool daily. Failing to participate in this "new industrial revolution" could result in lost market opportunities and competitiveness.

In this regard, the regulation of AI, a project led by the European Union and launched last year, aims to ensure the ethical and safe use of this technology, protecting user rights and fostering transparency.

Mass personalization, powered by AI, is transforming how businesses interact with their customers. The ability to offer tailored products and services not only enhances the customer experience but also increases loyalty and conversion rates.

In the realm of accessibility, the European Accessibility Act, which will come into force in June, requires products and services to be accessible to all individuals, including those with disabilities, as Jesús Hernández-Galán highlighted in this interview on the ONE Platform. This regulation will impact a wide range of digital products and services, including websites, mobile devices, television equipment, ATMs, payment terminals, e-books, banking services, healthcare, and e-commerce. Accessibility is not only a legal obligation but also an opportunity for businesses to expand their customer base and improve their reputation.

Sustainability is another key megatrend. Consumers and regulations are increasingly demanding that companies adopt eco-friendly and responsible practices. Those that do will not only contribute to building a greener future but also attract funding focused on positive-impact projects. In this context, the circular economy, based on resource reuse, is gaining ground as a viable and responsible business model. Startups adopting this approach contribute to reducing waste and environmental impact while discovering new business opportunities in material reuse and recycling. Emerging companies that embrace this model not only benefit the environment but also achieve significant savings and unlock new revenue streams or business models.

Challenges in 2025

Despite the opportunities presented by the entrepreneurial landscape in 2025, the challenges are no less significant. Among these, the fierce competition for acquiring and retaining talent stands out. This situation pushes startups to create an appealing work environment, offering professional development opportunities and fostering an inclusive culture that encourages innovation and attracts skilled professionals.

One key challenge is the low representation of women in the entrepreneurial ecosystem. The proportion of companies founded by women has remained at just 20% for years, according to the 2024 South Summit Entrepreneurship Map. To achieve a more equitable entrepreneurial ecosystem, it is essential to implement initiatives that promote STEAM careers among girls and young women, as well as support programs for women entrepreneurs. Additionally, facilitating access to funding for women-led projects, such as Microcredits for Women Entrepreneurs or the ENISA Digital Women’s Line, contributes to bridging the gender gap in this field, enriching the entrepreneurial ecosystem with a broader diversity of ideas and innovative solutions.

In an oversaturated and highly competitive market, another fundamental challenge is standing out and gaining visibility. To tackle this, marketing strategies and differentiation in business models are crucial to capturing the attention of both potential customers and future investors.

Furthermore, the increasing digitalization of industries poses cybersecurity risks that must be effectively managed. To address this, it is essential to prioritize cybersecurity efforts, striking a balance between innovation and data protection.

Finally, establishing a global presence can be a critical step to ensure startups’ competitiveness. Promoting growth and fostering internationalization is a shared goal for both administrations and entrepreneurs. Achieving this requires well-defined expansion strategies and leveraging opportunities for international collaboration.

Adapting to these trends and overcoming these challenges will be vital for entrepreneurs aiming for success in 2025.

The entrepreneurial landscape in 2025 is brimming with opportunities. Sectors such as information technology, financial services, health and biotechnology, and the circular economy offer tremendous growth potential. Investment in startups is expected to remain robust, with a focus on sustainability. Megatrends like the application of AI and sustainability will set the tone, while challenges such as talent acquisition, diversity, cybersecurity, and access to funding will continue to be crucial areas of focus.

With proper strategic planning and the support of all stakeholders, the Spanish entrepreneurial ecosystem has everything it takes to lead the next wave of innovation in Europe. The key will lie in adaptability and collaboration—essential factors for excelling and consolidating successful projects in 2025.